ADFA StartSmart First-Time Homebuyer Program

ADFA StartSmart First-Time Homebuyer Program is a first mortgage for homebuyers in Arkansas, administered by Arkansas Development Finance Authority (ADFA). StartSmart is ADFA's tax-exempt mortgage-revenue-bond-funded first mortgage offering below-market interest rates (approximately 1% below market) and lower monthly payments for first-time homebuyers in Arkansas. It can be paired with ADFA's Down Payment Assistance second mortgage. Serves all 75 Arkansas counties. 30-year fixed-rate first mortgage at approximately 1% below market rate; can be combined with ADFA Down Payment Assistance.

ADFA StartSmart First-Time Homebuyer Program is a first mortgage and is repaid under the terms set by Arkansas Development Finance Authority (ADFA). The assistance is recorded in first position. Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

ADFA StartSmart First-Time Homebuyer Program is open to first-time homebuyers and homebuyers who will live in the home as their primary residence. "First-time" has exceptions here: Veterans/spouses of veterans and buyers in 30 federally targeted counties are exempt from the first-time homebuyer requirement. The program lists a minimum credit score of 640. Must be a first-time homebuyer (not owned principal residence in prior 3 years), EXCEPT buyers in one of 30 federally targeted counties and veterans/spouses of veterans, who are exempt. Household income and purchase price limits apply (vary by county/household size). Must use an ADFA-approved lender.

ADFA StartSmart First-Time Homebuyer Program sets its income limit as follows: Household income cannot exceed maximum limits that vary by county and household size; see ADFA StartSmart Income Limits PDF. The limit applies to total household income, not only the borrower’s. Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

ADFA StartSmart First-Time Homebuyer Program caps the purchase price at $500,000. Eligible property types include single_family_detached, condominium, townhome, planned_unit_development, modular, duplex, and manufactured. New construction is eligible. Manufactured homes are eligible.

ADFA StartSmart First-Time Homebuyer Program names veterans and surviving spouses among the groups it serves. Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

ADFA StartSmart First-Time Homebuyer Program serves homebuyers purchasing anywhere in Arkansas. The program targets specific areas: 30 federally targeted counties where the first-time homebuyer requirement is waived.

Applications for ADFA StartSmart First-Time Homebuyer Program go through Arkansas Development Finance Authority (ADFA), which publishes the current terms and the application steps on its own site. Hey Prescott is not a lender and does not accept applications; this page describes the program so a homebuyer can take it to a lender or housing counselor.